• New data by Glassnode reveals that the US government is transferring around 40,000 Bitcoin held in wallets linked to law enforcement seizures.
• The transfer of $1 billion worth of Bitcoin between U.S. government wallets raises concerns about a potential sell-off that could drive down BTC prices.
• This movement stems from the 2013 raid of the illegal goods and services marketplace known as the Silk Road, where FBI had amassed over 144k tokens across various seizures.
US Government Crypto is on the Move
New data by Glassnode reveals that the US government is transferring around 40,000 Bitcoin held in wallets linked to law enforcement seizures. The transfer of $1 billion worth of Bitcoin between U.S. government wallets has raised concerns within the cryptocurrency community about a potential sell-off that could drive down BTC prices. This movement stems from the 2013 raid of the illegal goods and services marketplace known as the Silk Road, where FBI had amassed over 144k tokens across various seizures.
Impact on Short Term Market
Fears are mounting that a sell-off of potentially 40k Bitcoin could put downward pressure on the price of cryptocurrency. Moreover, with Bitcoin already down over 9% in just last week alone, it remains to be seen what kind of support there is at sub-$21k level indicating more short term losses may be on horizon.
Movement Originates From Silk Road Hack
In 2021, 9,861 tokens were seized from Silk Road hacker and sent to Coinbase cluster according to on-chain data show by PeckShield another blockchain security firm which confirmed in tweet that roughly 40,000 BTC was consolidated into two wallets controlled by US government .
Restitution for Victims Of BitConnect Fraud Scheme
From time to time U S Feds also sells off seized illicit crypto gains like in 2021 Department Of Justice announced they have sold $56 million worth cryptocurrency as restitution for victims BitConnect fraud scheme .
Conclusion
The movement of these funds has sparked fear amongst investors due to its potential negative effect on short term market performance and value which must be monitored closely .